Skyworks Solutions, Inc. (SWKS) upgraded its guidance for the second quarter of fiscal 2010. Management now expects revenues between $230 million and $235 million, up from the previous forecast of $225 million, driven by strong demand for mobile, internet, smart grid and new, high growth analog applications.
Results for the December quarter were better than expected. Revenues of $245.1 million surpassed management’s guidance range of $238 million – $242 million. The top-line growth was driven by increasing demand for mobile internet applications, increasingly diversified linear products and the rapid adoption of smart-grid technologies.
Earnings per share (EPS) came in at 27 cents, easily beating the Zacks Consensus Estimate of 21 cents. In the first quarter, the company delivered a positive surprise of 4.76% and a positive surprise of 55.56% in the fourth quarter of 2009. On an average, Skyworks has come ahead of the Zacks Consensus Estimate by 32.13% in the last four quarters.
Earnings per share for the second quarter are projected between 22 cents – 23 cents, up from the earlier estimate of 21 cents. The current Zacks Consensus Estimate for the first quarter of 2010 is 17 cents per share.
Skyworks is well positioned to benefit from recent trends in the handset market which are favorable for increasing dollar content for RF components. In general, the increasing complexity of higher-end phones offering multi-band communication across various air standards are expanding the market for Skyworks’ products due to the need for backward compatibility from 3G to 2G networks.
There is a significant growth opportunity in the handsets markets propelled by the launch of 3G in China. Another favorable trend is the continued shift towards multi-mode modules, which save board space in a handset, generating higher margins. The company has tie-ups with major OEMs that underscore the company’s success in gaining market share.
Headquartered in Woburn, MA, Skyworks Solutions designs, manufactures and markets a broad range of high performance analog and mixed-signal semiconductors that enable wireless connectivity.
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